Examining the Costs and Challenges of the Electric Vehicle Revolution

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A zero-emissions future appears to be the consensus among Democrat elected officials. The Biden administration is now proposing rules to ensure that 2/3 of new cars and 1/4 of heavy trucks sold in the U.S. by 2032 are electric. Blue states are also moving forward with notably strict emission standards on all transportation sectors, including phasing out or banning the use of internal combustion engines.       

Given these extraordinary changes, the absence of strong and vocal opposition – political and within the transportation industry – is unusual and troubling.  There are legitimate concerns, for example, about the carbon footprint of electric vehicles (EVs) and the social and economic inequalities exacerbated by EV adoption.     

The public deserves a full accounting of the costs that zero-emission imposes and a balanced discussion about the proper way forward.   

Let’s examine four concerns typically ignored by electrification advocates.  

First, Americans do not seem to be sold on electric.

Opinion polls show many Americans are unimpressed with electric cars. Only 1 in 5 would even consider an EV for their next vehicle.  The major reasons cited include concerns about cost, battery technology, preference for internal combustion engines (ICEs), lack of charging stations, and charging time.       

Despite these concerns, some Democratic leaders and their supporters remain committed to promoting EVs. President Biden’s Environmental Protection Agency recently announced admission standards that would require 67% of new vehicles to be electric by 2032 – 9 years from now. Last year, only 5.8% of new vehicles were electric.

Second, EV adoption produces greater economic inequality.

In 2022, the U.S. median household income was approximately $70,000 per year and the bottom quarter was $34,000.  The top ten percent of households earned $212,000 per year, while the bottom quarter earned $34,000.

Now consider that the average price of a new EV is over $66,000, which is well beyond the reach of most Americans and nearly $20,000 higher than the average price of a new ICE car, which is $48,000. As a result, many low- and middle-income consumers turn to the used car market, which is expected to grow considerably over the next decade.    

Vehicle ownership is not cheap. Low-income households spend a shockingly large proportion of their incomes on vehicle-related expenses, including fuel, maintenance, insurance, and purchases. In fact, median-income car-owning households spend nearly 25% of their income on these expenses, while high-income families spend less than 10%.

Therefore, expensive EVs are typically purchased by affluent households.

Third, there are additional barriers besides price.

The “premature electrification” commercial aired during the Super Bowl, which was amusing but ultimately offensive, demonstrates car manufacturers' condescending attitudes toward low- and middle-income Americans.  Charge and range anxieties are genuine psychological barriers to purchasing an EV, especially for families that can only afford a single car and must drive longer distances – which is often the case for rural poor people.

In addition, millions of low- and middle-income households do not have access to a charging point at home. If they do, an additional $1,500 to $3,000 is often required to install a suitable rapid charger 

EV owners without a charging point or a charger must find a privately owned commercial charging station, which can involve dealing with confusing payment systems, unexpectedly high electricity rates, broken chargers, and no guarantee of immediate access.

It is well-known that many poor Americans live in densely urban housing that lacks reliable electricity access and has very few dedicated parking spots, let alone space for charging stations. Low- and middle-income households are therefore most likely to experience the frustrations and expenses associated with a poor charging infrastructure, while the affluent can top off their EVs overnight in their garages with the latest charging technologies.

In summary, poor and middle-income families already endure a multitude of financial and social costs imposed by longer-than-average commutes and unreliable vehicles. Electrification multiplies these costs, exacerbating inequalities.

Fourth, saving the planet?

After signing an executive order that set a target of 50% of all new passenger vehicles sold by 2030 to be electric, Biden urged Americans to follow his lead, calling EV adoption an act 'to save the planet.'

However, careful attention to EV manufacturing reveals that it has a significant carbon footprint, including substantial environmental costs associated with mining raw materials for batteries, reliance on coal to generate electricity (which will increase as more EVs are charged), and an underdeveloped recycling infrastructure to manage the hazardous materials of EV batteries.   

Moreover, there are well-known human rights abuses, including forced and child labor, in the mining of lithium, cobalt, and other key battery materials around the world.

Undoubtedly, as production becomes cleaner and supply chains address labor issues, newer battery technologies may replace older ones, and the harmful environmental and social impacts may be mitigated. However, there are no guarantees, and EV manufacturing is more complicated and uncertain than it is typically presented.

We do know that transitioning to green energy sources imposes significant costs that affluent families can easily afford, while low- and middle-income families struggle to bear them.

Finally, criticism will produce a better future. 

Critical voices are needed to counterbalance the dominance of EVs. The purpose of criticism is not to halt progress or pollute the planet, but rather to foster genuine competition of ideas and elevate dissent as a necessary and vital way to improve policymaking and policy implementation.

Therefore, please support green energy and consider buying an EV to help save the planet.

However, as we plug in our EVs for the evening and celebrate the progress toward sustainable transportation, let's not ignore the fact that the EV revolution may not leave everyone better off.

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